Litigation Harvesting and Predatory Claims Practices

Predatory litigation financing is enabling plaintiff law firms to scale claim volume through technology-enabled claim farming after catastrophe events, unethical lead generation, text message marketing, and fake insurance company websites. Claims costs are 4-5x higher when represented by certain firms, and regulatory enforcement is not keeping pace with these practices.

Analysis:

The litigation harvesting problem creates demand for counter-technology — fraud detection, claims triage scoring, litigation analytics, and defense cost management. Startups building tools to help carriers and defense counsel identify and respond to predatory claim patterns have a clear buyer pain point and growing TAM as the problem worsens.